<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2003

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                     FOR THE TRANSITION PERIOD FROM - TO --

                         Commission file number 0-30665

                          CNB Financial Services, Inc.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as specified in its charter)




      United States of America                             55-0773918
 -------------------------------                      ----------------------
 (State or other jurisdiction of                        (I.R.S. Employer
 incorporation or organization)                         Identification No.)


 101 S. Washington Street, Berkeley Springs, WV              25411
 ----------------------------------------------       ----------------------
   (Address of principal executive offices)                (Zip Code)

Issuer's telephone number, (304)      258       -       1520
                           -----   ------------   ----------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                YES [ X ] NO [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2).

                                YES [ ] NO [ X ]

The aggregate value of the common stock of the Registrant that was held by
non-affiliates as of the most recently completed second fiscal quarter (June 30,
2003), was approximately $38.5 million. This amount was based on the last
closing sale price of a share of common stock of $100.00 as of the same date.

Common Stock $1 par value, 458,048 shares outstanding as of November 13, 2003



<PAGE>

                          CNB FINANCIAL SERVICES, INC.

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

 PART 1:    FINANCIAL INFORMATION                                                                      PAGE
<S>                                                                                                   <C>
  Item 1. Financial Statements

            Consolidated Statements of Financial Condition as of September 30, 2003 (Unaudited)
               and December 31, 2002....................................................................3

            Consolidated Statements of Income for the Three and Nine Months
               ended September 30, 2003 and 2002 (Unaudited) ...........................................4

            Consolidated Statements of Changes in Shareholders' Equity for the Nine
               Months Ended September 30, 2003 (Unaudited) and the Year Ended December 31, 2002.........5

            Consolidated Statements of Cash Flows for the Nine Months
               Ended September 30, 2003 and 2002 (Unaudited)............................................6

            Notes to Consolidated Financial Statements (Unaudited)......................................7

  Item 2.   Management's Discussion and Analysis of Financial Condition and
               Results of Operations for the Three and Nine Months ended September 30, 2003............11

  Item 3.   Quantitative and Qualitative Disclosures about Market Risk.................................19

  Item 4.   Controls and Procedures....................................................................20


PART II:    OTHER INFORMATION

  Item 1.   Legal  Proceedings........................................................................22

  Item 6.   Exhibits and Reports on Form 8-K..........................................................22

            SIGNATURES................................................................................23
</TABLE>

                           Forward-Looking Statements

          The Private Securities Litigation Reform Act of 1995 indicates that
the disclosure of forward-looking information is desirable for investors and
encourages such disclosure by providing a safe harbor for forward-looking
statements that involve risk and uncertainty. All statements other than
statements of historical fact included in this Form 10-Q including statements in
Management's Discussion and Analysis of Financial Condition and Results of
Operations are, or may be deemed to be, forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. In order to comply with the terms of the safe
harbor, CNB notes that a variety of factors could cause CNB's actual results and
experience to differ materially from the anticipated results or other
expectations expressed in those forward-looking statements. These factors could
include the following possibilities: (1) competitive pressures among depository
and other financial institutions may increase significantly; (2) changes in the
interest rate environment may reduce margins; (3) general economic conditions
may become unfavorable resulting in reduced credit quality or demand for loans;
(4) legislative or regulatory changes could increase expenses; and (5)
competitors may have greater financial resources and develop products that
enable them to compete more successfully than CNB.

                                       2

<PAGE>

               CNB FINANCIAL SERVICES, INC. AND SUBSIDIARY
             CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                                                          SEPTEMBER 30,     DECEMBER 31,
                                 ASSETS                                                       2003             2002
                                                                                          -------------    -------------
                                                                                           (Unaudited)
<S>                                                                                       <C>              <C>
Cash and due from banks                                                                   $   8,063,849    $   7,832,735
Federal funds sold                                                                              565,624        4,127,299
Securities available for sale
   (at approximate market value)                                                             42,680,827       43,429,902
Federal Home Loan Bank stock, at cost                                                           858,700          429,000
Federal Reserve Bank stock, at cost                                                             129,650          129,650
Loans and lease receivable, net                                                             140,037,963      128,330,303
Accrued interest receivable                                                                     856,486          891,986
Foreclosed real estate (held for sale), net                                                     107,619            1,800
Premises and equipment, net                                                                   4,649,673        4,800,135
Cash surrender value of life insurance                                                        1,047,745          964,179
Deferred income taxes                                                                           349,799             --
Intangible assets                                                                                89,970           96,483
Other assets                                                                                    881,271          568,608
                                                                                          -------------    -------------
         TOTAL ASSETS                                                                     $ 200,319,176    $ 191,602,080
                                                                                          =============    =============
                  LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
   Deposits:
        Demand                                                                            $  26,546,718    $  26,663,469
        Interest-bearing demand                                                              35,588,785       30,087,763
        Savings                                                                              23,652,063       21,489,855
        Time, $100,000 and over                                                              36,458,246       37,433,561
        Other time                                                                           57,780,450       57,387,901
                                                                                          -------------    -------------
                                                                                          $ 180,026,262    $ 173,062,549
   Accrued interest payable                                                                     827,872        1,010,086
   FHLB borrowings                                                                            1,250,000             --
   Deferred income taxes                                                                           --            158,269
   Accrued expenses and other liabilities                                                     1,597,894        1,101,158
                                                                                          -------------    -------------
         TOTAL LIABILITIES                                                                $ 183,702,028    $ 175,332,062
                                                                                          -------------    -------------
SHAREHOLDERS' EQUITY
   Common stock, $1 par value; 5,000,000  shares
       authorized; 458,048 shares outstanding                                             $     458,048    $     458,048
   Capital surplus                                                                            3,863,592        3,863,592
   Retained earnings                                                                         12,443,457       11,267,374
   Accumulated other comprehensive income                                                      (147,949)         681,004
                                                                                          -------------    -------------
         TOTAL SHAREHOLDERS' EQUITY                                                       $  16,617,148    $  16,270,018
                                                                                          -------------    -------------
         TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                       $ 200,319,176    $ 191,602,080
                                                                                          =============    =============
</TABLE>


The Notes to Consolidated Financial Statements are an integral part of these
statements.

                                       3

<PAGE>

              CNB FINANCIAL SERVICES, INC. AND SUBSIDIARY
             CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>

                                                         THREE MONTHS ENDED          NINE MONTHS ENDED
                                                            SEPTEMBER 30,               SEPTEMBER 30,
                                                    --------------------------   --------------------------
                                                       2003           2002          2003           2002
                                                    -----------    -----------   -----------    -----------
<S>                                                 <C>            <C>           <C>            <C>
INTEREST INCOME
   Interest and fees on loans                       $ 2,445,543    $ 2,253,727   $ 7,134,740    $ 6,731,977
   Interest and dividends on securities
      U.S. Government agencies and
         corporations                                   316,991        401,999       993,924      1,475,771
      Mortgage backed securities                        109,466        158,269       432,353        250,259
      State and political subdivisions                   16,465         13,113        44,190         29,946
      Other                                               3,499          3,728        15,597         19,124
   Interest on federal funds sold                         3,500         30,124        16,481         66,178
                                                    -----------    -----------   -----------    -----------
                                                    $ 2,895,464    $ 2,860,960   $ 8,637,285    $ 8,573,255
                                                    -----------    -----------   -----------    -----------
INTEREST EXPENSE
   Interest on interest bearing demand,             $   969,351    $ 1,334,613   $ 3,258,959    $ 4,060,939
     savings and time deposits
   Interest on federal funds purchased                      555           --             825           --
   Interest on FHLB borrowings                            1,877           --           1,877           --
                                                    -----------    -----------   -----------    -----------
                                                    $   971,783    $ 1,334,613   $ 3,261,661    $ 4,060,939
                                                    -----------    -----------   -----------    -----------
           NET INTEREST INCOME                      $ 1,923,681    $ 1,526,347   $ 5,375,624    $ 4,512,316

PROVISION FOR LOAN LOSSES                                57,000         40,500       194,000        152,000
                                                    -----------    -----------   -----------    -----------
           NET INTEREST INCOME AFTER
               PROVISION FOR LOAN LOSSES            $ 1,866,681    $ 1,485,847   $ 5,181,624    $ 4,360,316
                                                    -----------    -----------   -----------    -----------
NONINTEREST INCOME
   Service charges on deposit accounts              $   255,337    $   199,188   $   693,431    $   538,363
   Other service charges, commissions
      and fees                                           90,042         82,333       277,472        255,195
   Insurance commissions                                 29,426         27,331        80,060         78,715
   Other operating income                                16,290         11,935        61,681         59,951
   Net gain on sale of securities                        63,981           --         161,073         78,028
   Income from title company                             16,500          7,500        40,050         40,900
   Gain (loss) on sale of other real estate owned          (876)          --            (876)         3,492
                                                    -----------    -----------   -----------    -----------
                                                    $   470,700    $   328,287   $ 1,312,891    $ 1,054,644
                                                    -----------    -----------   -----------    -----------
NONINTEREST EXPENSES
   Salaries                                         $   592,531    $   588,030   $ 1,755,359    $ 1,683,422
   Employee benefits                                    188,652        183,844       617,792        554,321
   Occupancy of premises                                 75,296         62,758       223,110        205,714
   Furniture and equipment expense                      165,621         90,260       468,056        271,088
   Other operating expenses                             387,628        432,084     1,299,865      1,257,836
                                                    -----------    -----------   -----------    -----------
                                                    $ 1,409,728    $ 1,356,976   $ 4,364,182    $ 3,972,381
                                                    -----------    -----------   -----------    -----------
            INCOME BEFORE INCOME TAXES              $   927,653    $   457,158   $ 2,130,333    $ 1,442,579

PROVISION FOR INCOME TAXES                              329,127        160,319       775,611        505,470
                                                    -----------    -----------   -----------    -----------
            NET INCOME                              $   598,526    $   296,839   $ 1,354,722    $   937,109
                                                    ===========    ===========   ===========    ===========
BASIC EARNINGS PER SHARE                            $      1.31    $      0.65   $      2.96    $      2.05
                                                    ===========    ===========   ===========    ===========
</TABLE>

The Notes to Consolidated Financial Statements are an integral part of these
statements.

                                       4

<PAGE>

                   CNB FINANCIAL SERVICES, INC. AND SUBSIDIARY
     CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)
<TABLE>
<CAPTION>
                                                                                                 ACCUMULATED
                                                                                                    OTHER              TOTAL
                                            COMMON            CAPITAL           RETAINED        COMPREHENSIVE      SHAREHOLDERS'
                                            STOCK             SURPLUS           EARNINGS            INCOME             EQUITY
                                         --------------    ---------------   ---------------    ---------------    ---------------
<S>                                         <C>              <C>               <C>                  <C>              <C>
BALANCE, DECEMBER 31, 2001                   $ 458,048        $ 3,863,592       $10,426,618          $ 177,979        $14,926,237
                                                                                                                   ---------------
Comprehensive income:
   Net income for 2002                               -                  -         1,307,965                  -          1,307,965
  Change in unrealized gains
    (losses) on securities
    available for sale
    (net of tax of $308,306)                         -                  -                 -            503,025            503,025
                                                                                                                   ---------------
Total Comprehensive Income                           -                  -                 -                  -          1,810,990
                                                                                                                   ---------------
Cash dividends ($1.02 per share)                     -                  -          (467,209)                 -           (467,209)
                                         --------------    ---------------   ---------------    ---------------    ---------------

BALANCE, DECEMBER 31, 2002                   $ 458,048        $ 3,863,592       $11,267,374          $ 681,004        $16,270,018
Comprehensive income:
   Net income for nine months
       ended September 30, 2003                      -                  -         1,354,722                  -          1,354,722
  Change in unrealized gains
    (losses) on securities
    available for sale (net of
    tax of $389,891)                                 -                  -                 -           (636,138)          (636,138)
  Change in minimum pension liability
    adjustment (net of tax of $118,177)                                                               (192,815)          (192,815)
                                                                                                                   ---------------
Total Comprehensive Income                           -                  -                 -                  -            525,769
                                                                                                                   ---------------
Cash dividends ($0.39 per share)                     -                  -          (178,639)                 -           (178,639)
                                         --------------    ---------------   ---------------    ---------------    ---------------
BALANCE, SEPTEMBER 30, 2003                  $ 458,048        $ 3,863,592       $12,443,457         $ (147,949)       $16,617,148
                                         ==============    ===============   ===============    ===============    ===============
</TABLE>

The Notes to Consolidated Financial Statements are an integral part of these
statements.

                                       5

<PAGE>

                 CNB FINANCIAL SERVICES, INC. AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
<TABLE>
<CAPTION>
                                                                             NINE MONTHS ENDED
                                                                                SEPTEMBER 30,
                                                                        ----------------------------
                                                                            2003            2002
                                                                        ------------    ------------
<S>                                                                     <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                              $  1,354,722    $    937,109
Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation and amortization                                           407,785         261,743
     Provision for loan losses                                               194,000         152,000
     Net (gain) on sale of securities                                       (161,073)        (78,028)
     (Gain) loss on sale of real estate owned                                    876          (3,492)
     Decrease in accrued interest receivable                                  35,500          63,428
     (Increase) decrease in other assets                                     (68,716)        274,046
     (Decrease) in accrued interest payable                                 (182,214)       (177,441)
     (Increase) in cash surrender value on life insurance in excess
          of premiums paid                                                   (15,000)         (3,408)
     Increase in accrued expenses and other liabilities                      169,311          76,419
     Amortization of deferred loan (fees) cost                                 6,349          56,319
     Amortization (accretion) of premium and discount on investments         127,613          15,244
                                                                        ------------    ------------
         NET CASH PROVIDED BY OPERATING ACTIVITIES                      $  1,869,153    $  1,573,939
                                                                        ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Net (increase) in loans                                            $(12,015,627)   $ (9,649,661)
     Proceeds from sales of securities                                    11,628,314       7,075,471
     Proceeds from maturities of securities                               23,091,545      28,653,020
     Purchases of securities                                             (35,393,053)    (34,290,835)
     Purchases of premises and equipment                                    (478,324)     (1,032,053)
     Proceeds from sales of other real estate owned, net                         924          48,390
     Net (increase) decrease in federal funds sold                         3,561,674      (4,973,533)
     Premiums paid on life insurance                                         (68,566)        (49,078)
                                                                        ------------    ------------
         NET CASH (USED IN) INVESTING ACTIVITIES                        $ (9,673,113)   $(14,218,279)
                                                                        ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Net increase in demand and savings deposits                         $  7,546,479    $ 14,401,646
    Net increase (decrease) in time deposits                                (582,766)      2,994,160
    Net increase in FHLB borrowings                                        1,250,000            --
    Cash dividends paid                                                     (178,639)       (164,897)
                                                                        ------------    ------------
         NET CASH PROVIDED BY FINANCING ACTIVITIES                      $  8,035,074    $ 17,230,909
                                                                        ------------    ------------
         NET INCREASE IN CASH AND CASH EQUIVALENTS                      $    231,114    $  4,586,569
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                             7,832,735       4,229,810
                                                                        ------------    ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                              $  8,063,849    $  8,816,379
                                                                        ============    ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
     Cash paid during the period:
               Interest                                                 $  3,443,874    $  4,238,380
               Income taxes                                             $    582,000    $     50,200
     Net transfer to foreclosed real estate, held for sale from loans
            receivable                                                  $    105,528    $     36,500
</TABLE>



The Notes to Consolidated Financial Statements are an integral part of these
statements.

                                       6

<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note 1. Basis of Presentation

            In the opinion of CNB Financial Services, Inc. ("CNB" or the
      "Company"), the accompanying unaudited consolidated financial statements
      contain all adjustments (consisting of only normal recurring accruals)
      necessary for a fair presentation of CNB financial condition as of
      September 30, 2003 and the results of operations for the three and nine
      months ended September 30, 2003 and 2002 and cash flows for the nine
      months ended September 30, 2003 and 2002.

            The accompanying unaudited financial statements have been prepared
      in accordance with the instructions for Form 10-Q. These financial
      statements should be read in conjunction with the consolidated financial
      statements and the notes included in CNB's Annual Report for the year
      ended December 31, 2002.

      Reclassifications:

            Certain 2002 amounts have been reclassified to conform with 2003
      classifications. Such reclassifications had no effect on financial
      position and results of operations.

Note 2. Securities

            The amortized cost and estimated market value of debt securities at
      September 30, 2003 and December 31, 2002 by contractual maturity are shown
      below. Expected maturities will differ from contractual maturities because
      borrowers may have the right to call or prepay obligations with or without
      call or prepayment penalties.

            Securities are summarized as follows:

<TABLE>
<CAPTION>
                                                               SEPTEMBER 30, 2003                                 WEIGHTED
                                      -----------------------------------------------------------------------     AVERAGE
                                                             GROSS             GROSS            ESTIMATED           TAX
                                        AMORTIZED          UNREALIZED        UNREALIZED            FAIR          EQUIVALENT
                                           COST              GAINS             LOSSES             VALUE             YIELD
                                      ---------------    ---------------   ---------------    ------------      -------------
<S>                                 <C>                  <C>                <C>               <C>               <C>
Available for sale:
    U.S. Government agencies
      and corporations
      After 1 but within 5 years           4,765,118            239,254                 -          5,004,372        4.84 %
      After 5 but within 10 years         24,417,396             67,507           205,629         24,279,274        4.33
                                      ---------------    ---------------   ---------------    ---------------
                                         $29,182,514          $ 306,761         $ 205,629        $29,283,646        4.42 %
                                      ---------------    ---------------   ---------------    ---------------
    States and political subdivisions
      Within one year                    $   250,000          $   1,468               $ -        $   251,468        6.00 %
      After 1 but within 5 years             368,462                527               376            368,613        2.40
      After 5 but within 10 years          2,199,628             35,040             4,827          2,229,841        3.36
                                      ---------------    ---------------   ---------------    ---------------
                                         $ 2,818,090          $  37,035         $   5,203        $ 2,849,922        3.47 %
                                      ---------------    ---------------   ---------------    ---------------

    Mortgage backed securities           $10,607,857          $  37,733         $  98,331        $10,547,259        4.47 %
                                      ---------------    ---------------   ---------------    ---------------

Total securities available for sale      $42,608,461          $ 381,529         $ 309,163        $42,680,827        4.37 %
                                      ===============    ===============   ===============    ===============

Restricted:
    Federal Reserve Bank stock           $   129,650          $       -         $       -        $   129,650        6.00 %
    Federal Home Loan Bank stock             858,700                  -                 -            858,700        2.00
                                      ---------------    ---------------   ---------------    ---------------
Total restricted investments             $   988,350          $       -         $       -        $   988,350        2.52 %
                                      ===============    ===============   ===============    ===============
</TABLE>


                                       7

<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


        Note 2.   Securities (continued)

<TABLE>
<CAPTION>
                                                                      December 31, 2002                           Weighted
                                      -----------------------------------------------------------------------     Average
                                                             Gross             Gross            Estimated            Tax
                                        Amortized          Unrealized        Unrealized            Fair          Equivalent
                                           Cost              Gains             Losses             Value             Yield
                                      ---------------    ---------------   ---------------    ---------------    ------------
<S>                                      <C>                <C>               <C>                <C>                 <C>

Available for sale:
    U.S. Government agencies
      and corporations
      Within one year                    $ 5,300,481        $    26,917       $         -        $ 5,327,398         4.75 %
      After 1 but within 5 years           9,880,564            496,919                 -         10,377,483         4.76
      After 5 but within 10 years         12,135,426            187,756                 -         12,323,182         4.99
                                      ---------------    ---------------   ---------------    ---------------
                                         $27,316,471        $   711,592       $         -        $28,028,063         4.86 %
                                      ---------------    ---------------   ---------------    ---------------
    States and political subdivisions
      Within one year                    $   350,000        $     9,747       $         -        $   359,747         8.27 %
      After 5 but within 10 years            775,000             21,967                 -            796,967         6.22
                                      ---------------    ---------------   ---------------    ---------------
                                         $ 1,125,000        $    31,714       $         -        $ 1,156,714         6.86 %
                                      ---------------    ---------------   ---------------    ---------------
    Mortgage backed securities           $13,890,037        $   355,088       $         -        $14,245,125         5.20 %
                                      ---------------    ---------------   ---------------    ---------------
Total securities available for sale      $42,331,508        $ 1,098,394       $         -        $43,429,902         5.02 %
                                      ===============    ===============   ===============    ===============
Restricted:
    Federal Reserve Bank stock             $ 129,650        $         -       $         -        $   129,650         6.00 %
    Federal Home Loan Bank stock             429,000                  -                 -            429,000         3.25
                                      ---------------    ---------------   ---------------    ---------------
Total restricted investments               $ 558,650        $         -       $         -        $   558,650         3.89 %
                                      ===============    ===============   ===============    ===============
</TABLE>



                  The carrying value of securities pledged to secure public
         deposits and for other purposes as required or permitted by law totaled
         $12,856,529 at September 30, 2003 and $12,864,841 at December 31, 2002.

                  Proceeds from sales of securities available for sale
         (excluding maturities) during the nine months ended September 30, 2003
         and the year ended December 31, 2002 were $11,628,314 and $7,075,471,
         respectively. Gross gains (losses) of $210,572 and $(49,499) during the
         nine months ended September 30, 2003 and $78,028 and $(-0-) for the
         year ended December 31, 2002 were realized on the respective sales.



                                       8
<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note 3. Loans and Lease Receivable

            Major classifications of loans at September 30, 2003 and December
      31, 2002, were as follows:

<TABLE>
<CAPTION>
                                 SEPTEMBER 30,     DECEMBER 31,
                                     2003             2002
                                 -------------    -------------
<S>                              <C>              <C>
Loans:
  Real estate                    $  95,125,345    $  83,239,409
  Commercial real estate            19,483,912       13,934,900
  Consumer                          17,251,767       22,575,379
  Commercial                         8,745,781        9,684,720
  Overdrafts                           622,395           72,763
                                 -------------    -------------
                                 $ 141,229,200    $ 129,507,171
Lease:                                 132,083          135,341
                                 -------------    -------------
                                 $ 141,361,283    $ 129,642,512
Net deferred loan fees, costs,
    premiums and discounts             228,028          172,239
Allowance for loan losses           (1,551,348)      (1,484,448)
                                 -------------    -------------
                                 $ 140,037,963    $ 128,330,303
                                 =============    =============
</TABLE>


            An analysis of the allowance for possible loan losses is as follows:
<TABLE>
<CAPTION>
                                  SEPTEMBER 30,          DECEMBER 31,
                           --------------------------    -----------
                              2003           2002           2002
                           -----------    -----------    -----------
<S>                        <C>            <C>            <C>
Balance, Beginning         $ 1,484,448    $ 1,336,960    $ 1,336,960
    Provision charged to
        operations             194,000        152,000        261,000
    Recoveries                  50,689         31,346         37,230
    Loans charged off         (177,789)       (98,053)      (150,742)
                           -----------    -----------    -----------
Balance, Ending            $ 1,551,348    $ 1,422,253    $ 1,484,448
                           ===========    ===========    ===========
</TABLE>



            Loans are placed in nonaccrual status when, in the judgement of
      management, the probability of collection of interest is deemed to be
      insufficient to warrant further accrual. When interest accruals are
      discontinued, interest credited to income is reversed. Nonaccrual loans
      are restored to accrual status when all delinquent principal and interest
      becomes current or the loan is considered secured and in the process of
      collection. Certain loans that are determined to be sufficiently
      collateralized may continue to accrue interest after reaching 90 days past
      due. A summary of nonperforming loans is as follows:
<TABLE>
<CAPTION>
                                                                             SEPTEMBER 30,                     DECEMBER 31,
                                                                ---------------------------------------     -----------------
                                                                      2003                  2002                  2002
                                                                -----------------     -----------------     -----------------
<S>                                                                    <C>                   <C>                   <C>
Nonaccrual  loans                                                      $ 625,137             $   9,338             $  12,711
Loans past due 90 days or more still accruing interest                    81,152               116,145               553,170
                                                                ----------------      ----------------      ----------------
     Total                                                             $ 706,289             $ 125,483             $ 565,881
                                                                ================      ================      ================
</TABLE>



                                       9
<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note 4.  Time Deposits

            At September 30, 2003, the scheduled maturities of time deposits are
      as follows:
<TABLE>
<CAPTION>

                                             TIME DEPOSITS                  ALL TIME
                                           $100,000 AND OVER                DEPOSITS
                                           -----------------                --------
<S>                                           <C>                        <C>
Within 3 months                               $  7,965,685                $ 16,030,053
3 months thru 6 months                           2,152,162                   7,348,274
6 months thru 12 months                          4,749,210                  11,217,270
Over 12 months                                  21,591,189                  59,643,099
                                              ------------                ------------
                                              $ 36,458,246                $ 94,238,696
                                              ============                ============
</TABLE>

Note 5.  Federal Home Loan Bank Borrowings
<TABLE>
<CAPTION>
                                                        SEPTEMBER 30,                  DECEMBER 31,
                                         ---------------------------------------    -----------------
                                               2003                  2002                 2002
                                         -----------------     -----------------    -----------------
<S>                                           <C>                  <C>                  <C>
Federal Home Loan Bank advances               $ 1,250,000          $    -               $    -
</TABLE>

            Citizens National Bank is a member of the Federal Home Loan Bank
      ("FHLB") of Pittsburgh and, as such, can take advantage of the FHLB
      program for overnight and term advances at published daily rates. Federal
      Home Loan Bank advances mature through October 2003 and carry an interest
      rate of 1.3%. Under the terms of a blanket collateral agreement, advances
      from the FHLB are collateralized by qualifying mortgages and US government
      agencies and mortgage-backed securities. In addition, all of the Bank's
      stock in the FHLB is pledged as collateral for such debt. Advances
      available under this agreement are limited by available and qualifying
      collateral and the amount of FHLB stock held by the borrower.



                                       10
<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

GENERAL

                  CNB Financial Services, Inc. ("CNB" or the "Company") was
         organized under the laws of West Virginia in March 2000 at the
         direction of the Board of Directors of Citizens National Bank (the
         "Bank") for the purpose of becoming a financial services holding
         company. The Company's primary function is to direct, plan and
         coordinate the business activities for the Bank and its subsidiary. We
         refer to the Company and its subsidiary as "CNB".

                  On August 31, 2000, the Bank, via merger, became a
         wholly-owned subsidiary of the Company and the shareholders of the Bank
         became shareholders of the Company. Each Bank shareholder received two
         shares of the Company stock for each share of the Bank's common stock.
         The merger was accounted for as a pooling of interests.

                  The Bank was organized on June 20, 1934, and has operated in
         Berkeley Springs in Morgan County, West Virginia, as a national banking
         association continuously since that time. The Bank is a full-service
         commercial bank conducting general banking and trust activities through
         four full-service offices and three automated teller machines located
         in Morgan and Berkeley Counties, West Virginia. The Bank formed CNB
         Insurance Services, Inc., a wholly owned subsidiary, which is a
         property and casualty insurance agency selling primarily personal lines
         of insurance.

                  The Bank has entered into an option to purchase a parcel of
         land in the Spring Mills Development in Berkeley County, West Virginia
         on July 22, 2003. The original option was for 90 days and has been
         renewed and will expire on December 19, 2003. The bank expects to
         exercise the option to purchase the land. Subject to regulatory
         approval, the bank further intends to construct a full-service branch
         facility. The expected building completion date is during the fourth
         quarter of 2004. A $5,000 deposit was paid and will be applied to the
         purchase price at closing and the Bank has incurred additional expenses
         in connection with the purchase of this parcel of land of $6,705 as of
         September 30, 2003.

                  The following discussion and analysis presents the significant
         changes in financial condition and results of operations of CNB for the
         three and nine months ended September 30, 2003 and 2002. This
         discussion may include forward-looking statements based upon
         management's expectations. Actual results may differ. We have rounded
         amounts and percentages used in this discussion and have based all
         average balances on daily averages.

EARNINGS SUMMARY

                  Net income for the three months ended September 30, 2003 was
         $599,000 or $1.31 per share compared to $297,000 or $0.65 per share for
         the same period in 2002. Annualized return on average assets and
         average equity were 1.2% and 14.2% respectively, for the three months
         ended September 30, 2003, compared with .6% and 7.5%, respectively, for
         the three months ended September 30, 2002.

                  Net income for the nine months ended September 30, 2003 was
         $1,355,000 or $2.96 per share compared to $937,000 or $2.05 per share
         for the same period in 2002. Annualized return on average assets and
         average equity were .9% and 10.7% respectively, for the nine months
         ended September 30, 2003, compared with .7% and 8.2%, respectively, for
         the nine months ended September 30, 2002.

                  Growth in net income for the year 2004 is projected to slow
         down compared to the growth in net income for 2003 due to the
         additional expenses related to the projected opening of a new branch
         facility and the slowing of the maturities of the higher interest
         bearing 36 month Certificate of Deposits causing interest expense to
         level out. The steady loan growth is expected to continue through 2004
         although not at the level experienced in the recent past. As a result
         of lower interest rates and slower loan growth, interest income on
         loans will be impacted.



                                       11
<PAGE>

NET INTEREST INCOME

                  Net interest income represents the primary component of CNB's
         earnings. It is the difference between interest and fee income related
         to earning assets and interest expense incurred to carry
         interest-bearing liabilities. Changes in the volume and mix of interest
         earning assets and interest bearing liabilities, as well as changing
         interest rates, impact net interest income. To manage these changes,
         their impact on net interest income and the risk associated with them,
         CNB utilizes an ongoing asset/liability management program. This
         program includes analysis of the difference between rate sensitive
         assets and rate sensitive liabilities, earnings sensitivity to rate
         changes, and source and use of funds. A discussion of net interest
         income and the factors impacting it is presented below.

                  Net interest income for the three months ended September 30,
         2003 increased by $397,000 or 26.0% over the same period in 2002.
         Interest income for the three months ended September 30, 2003 increased
         by $34,000 or 1.2% compared to the same period in 2002, while interest
         expense decreased by $363,000 or 23.8% during the three months ended
         September 30, 2003, as compared to the same period in the prior year.

                  Net interest income for the nine months ended September 30,
         2003 increased by $863,000 or 19.1% over the same period in 2002.
         Interest income for the nine months ended September 30, 2003 increased
         by $64,000 or 0.8% compared to the same period in 2002, while interest
         expense decreased by $799,000 or 19.7% during the nine months ended
         September 30, 2003, as compared to the same period in the prior year.

                  Increased net interest income for the three and nine month
         periods is attributable to a significantly higher level of net interest
         earning assets offset by a decrease in the rates earned thereon. The
         Bank continues to experience a shift in the asset mix from lower
         yielding overnight federal funds and investment securities to higher
         yielding loans due to the continued high loan demand. The decrease in
         the rates earned on interest earning assets is due to the current
         economic conditions. The Bank has continued to experience steady
         deposit growth. Although the average balance on interest bearing
         liabilities increased, total interest expense decreased due to a
         decrease in the average rates paid on all interest bearing liabilities.
         The Bank's higher loan demand and steady deposit growth has resulted in
         an increased loan to deposit ratio.

                  During the third quarter of 2003 compared to the same period
         in 2002, average net interest earning assets increased $9.6 million or
         5.5% and average net interest bearing liabilities increased $5.2
         million or 3.6% resulting in increased net interest income. CNB
         experienced a 62 basis point increase in the ratio of net interest
         income to average interest earning assets. The 109 basis point decrease
         in rates paid on average interest bearing liabilities offset by a 33
         basis point decrease in rates earned on average interest earning assets
         contributed to the increase in the net interest margin. See Table 1 and
         Table 2 - Distribution of Assets, Liabilities, and Shareholders'
         Equity; Interest Rates and Interest Differential.

                  The net interest margin is impacted by the change in the
         spread between yields on earning assets and rates paid on interest
         bearing liabilities.



                                       12
<PAGE>

     TABLE 1. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
                    INTEREST RATES AND INTEREST DIFFERENTIAL

<TABLE>
<CAPTION>

                                                          SEPTEMBER 30, 2003                              SEPTEMBER 30, 2002
                                               -----------------------------------------      ----------------------------------
                                                    QTR                                           QTR           QTR
                                                  AVERAGE         QTR            YIELD/         AVERAGE       AVERAGE    YIELD/
                                                  BALANCE Q     INTEREST          RATE  (4)      BALANCE      INTEREST    RATE  (4)
                                               -----------------------------------------      ----------------------------------
                                                                          (IN THOUSANDS OF DOLLARS)
<S>                                               <C>             <C>             <C>             <C>           <C>        <C>
Interest earning assets:
    Federal funds sold                            $   1,785       $     3          0.90 %         $   7,167     $    30    1.65 %
    Securities:
      Taxable                                        42,980           434          4.04              46,862         567    4.84
      Tax-exempt (1)                                  1,526            13          5.16                 889          10    6.82
    Loans (net of unearned interest) (2)(5)(6)      138,341         2,334          6.75             120,081       2,176    7.25
                                               -----------------------------------------      ----------------------------------
        Total interest earning assets (1)         $ 184,632       $ 2,784          6.03 %         $ 174,999     $ 2,783    6.36 %
                                               -----------------------------------------      ----------------------------------
Nonearning assets:
    Cash and due from banks                       $   7,193                                       $   7,056
    Bank premises and equipment, net                  4,674                                           4,759
    Other assets                                      3,061                                           2,523
    Allowance for loan losses                        (1,553)                                         (1,417)
                                               -------------                                  --------------
        Total assets                              $ 198,007                                       $ 187,920
                                               =============                                  ==============
Interest bearing liabilities:
    Savings deposits                              $  23,211       $    29          0.50 %         $  20,470     $    25    0.49 %
    Time deposits                                    94,107           854          3.63              95,625       1,217    5.09
    NOW accounts                                     25,775            72          1.12              24,767          81    1.31
    Money market accounts                             7,276            14          0.77               5,014          12    0.96
    Borrowings                                          747             2          1.07                   -           -
                                               -----------------------------------------      ----------------------------------
        Total interest bearing liabilities        $ 151,116       $   971          2.57 %         $ 145,876     $ 1,335    3.66 %
                                               -----------------------------------------      ----------------------------------
Noninterest bearing liabilities:
    Demand deposits                               $  27,359                                       $  24,092
    Other liabilities                                 2,610                                           2,062
    Shareholders' equity                             16,922                                          15,890
                                               -------------                                  --------------
        Total liabilities and

           shareholders' equity                   $ 198,007                                       $ 187,920
                                               =============                                  ==============
                                                            --------------                                  ------------
Net interest income (1)                                           $ 1,813                                       $ 1,448
                                                            ==============                                  ============
Net interest spread (3)                                                            3.46 %                                  2.70 %
                                                                          ==============                                ========
Net interest income to average
    interest earning assets (1)                                                    3.93 %                                  3.31 %
                                                                          ==============                                ========
</TABLE>

(1)   Yields are expressed on a tax equivalent basis using a 34% tax rate.

(2)   For the purpose of these computations, nonaccruing loans are included in
      the amounts of average loans outstanding.

(3)   Net interest spread is the difference between the weighted average yield
      on interest-earning assets and the weighted average cost of
      interest-bearing liabilities.

(4)   Yields/Rates are expressed on annualized basis.

(5)   Interest income on loans excludes fees of $111,000 in 2003 and $78,000 in
      2002.

(6)  Interest income on loans includes fees of $41,255 in 2003 and $28,031 in
     2002 from the Business Manager Program, student loans and lease
     receivables.



                                       13
<PAGE>

     TABLE 2. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
                    INTEREST RATES AND INTEREST DIFFERENTIAL

<TABLE>
<CAPTION>

                                                         SEPTEMBER 30, 2003                               SEPTEMBER 30, 2002
                                               -----------------------------------------      -------------------------------------
                                                    YTD                                           YTD
                                                  AVERAGE            YTD         YIELD/          AVERAGE        YTD       YIELD/
                                                  BALANCE          INTEREST      RATE  (4)       BALANCE      INTEREST     RATE  (4)
                                               ---------------------------------------------------------------------------------
                                                                          (IN THOUSANDS OF DOLLARS)
<S>                                               <C>              <C>            <C>             <C>          <C>         <C>
Interest earning assets:
   Federal funds sold                             $   1,894       $    16          1.07 %         $   4,850    $    66     1.64 %
   Securities:
     Taxable                                         44,660         1,453          4.34              48,039      1,756     4.87
     Tax-exempt (1)                                   1,201            33          5.55                 622         19     6.17
   Loans (net of unearned interest) (2)(5)(6)       134,290         6,817          6.77             115,760      6,481     7.46
                                               -----------------------------------------      ----------------------------------
        Total interest earning assets (1)         $ 182,045       $ 8,319          6.09 %         $ 169,271    $ 8,322     6.56 %
                                               -----------------------------------------      ----------------------------------
Nonearning assets:
   Cash and due from banks                        $   6,695                                       $   6,580
   Bank premises and equipment, net                   4,731                                           4,549
   Other assets                                       3,090                                           2,441
   Allowance for loan losses                         (1,527)                                         (1,394)
                                               -------------                                  --------------
        Total assets                              $ 195,034                                       $ 181,447
                                               =============                                  ==============
Interest bearing liabilities:
   Savings deposits                               $  22,590          $ 84          0.50 %         $  19,278    $    91     0.63 %
   Time deposits                                     94,779         2,924          4.11              94,978      3,694     5.19
   NOW accounts                                      24,861           213          1.14              22,671        236     1.39
   Money market accounts                              6,643            38          0.76               5,076         40     1.05
   Borrowings                                           257             3          1.56                   -          -
                                               -----------------------------------------      ----------------------------------
        Total interest bearing liabilities        $ 149,130       $ 3,262          2.92 %         $ 142,003    $ 4,061     3.81 %
                                               -----------------------------------------      ----------------------------------
Noninterest bearing liabilities:
   Demand deposits                                $  26,794                                       $  22,178
   Other liabilities                                  2,446                                           1,938
   Shareholders' equity                              16,664                                          15,328
                                               -------------                                  --------------
        Total liabilities and
           shareholders' equity                   $ 195,034                                       $ 181,447
                                               =============                                  ==============
                                                            --------------                                  -----------
Net interest income (1)                                           $ 5,057                                      $ 4,261
                                                            ==============                                  ===========
Net interest spread (3)                                                            3.17 %                                  2.75 %
                                                                          ==============                               =========
Net interest income to average
   interest earning assets (1)                                                     3.70 %                                  3.36 %
                                                                          ==============                               =========
</TABLE>

(1)   Yields are expressed on a tax equivalent basis using a 34% tax rate.

(2)   For the purpose of these computations, nonaccruing loans are included in
      the amounts of average loans outstanding.

(3)   Net interest spread is the difference between the weighted average yield
      on interest-earning assets and the weighted average cost of
      interest-bearing liabilities.

(4)   Yields/Rates are expressed on annualized basis.

(5)   Interest income on loans excludes fees of $318,000 in 2003 and $251,000 in
      2002.

(6)  Interest income on loans includes fees of $110,594 in 2003 and $128,309 in
     2002 from the Business Manager Program, student loans and lease
     receivables.



                                       14
<PAGE>

PROVISION FOR LOAN LOSSES

      The amount charged to provision for loan losses is based on management's
evaluation of the loan portfolio. Management determines the adequacy of the
allowance for loan losses, based on past loan loss experience, current economic
conditions and composition of the loan portfolio. The allowance for loan losses
is the best estimate of management of the probable losses which have been
incurred as of a balance sheet date.

      The provision for loan losses is a charge to earnings which is made to
maintain the allowance for loan losses at a sufficient level. The provision for
loan losses for the three months ended September 30, 2003, and September 30,
2002, amounted to $57,000 and $41,000, respectively. The provision for loan
losses for the nine months ended September 30, 2003, and September 30, 2002,
amounted to $194,000 and $152,000, respectively. Loan quality remains stable and
past dues are minimal while nonaccruals have shown an increase. Nonaccruals have
increased primarily due to two borrowers one of which has a commercial real
estate loan with a principal balance of $315,000 which the borrower is in the
process of selling the business. The sale should be consummated with the Bank
expecting the loan to be paid in full within the fourth quarter of 2003. The
other borrower has three loans with principal balances totaling $159,000, which
are in the process of being consolidated. Management believes the allowance for
loan losses is adequate and is not aware of any information relating to the loan
portfolio which it expects will materially impact future operating results,
liquidity or capital resources. In addition, federal regulators may require
additional reserves as a result of their examination of the bank. See
"Nonperforming Assets and Allowance for Loan Losses" for further discussion.

NONINTEREST INCOME

      Noninterest income for the three months ended September 30, 2003 increased
$142,000 or 43.4% to $471,000 from $328,000 in the third quarter of 2002. The
increase in noninterest income is attributable to fees generated from the Bounce
Protection program, debit cards, gain on sale of loans and gain on sale of
investment securities offset by a decrease in overdraft fees and ATM fees. The
fees related to the Bounce Protection program and debit cards have a direct
correlation to the increased deposit base of the bank.

      Noninterest income for the nine months ended September 30, 2003 increased
$258,000 or 24.5 % to $1.3 million from $1.1 million for the same period in
2002. The increase in noninterest income was attributable to fees generated from
the Bounce Protection program, debit card income, gain on sale of loans and gain
on sale of investment securities offset by a decrease in overdraft fees, trust
fee income and gain on sale of other real estate owned. The decrease in trust
fees was a direct result of the fees earned from the settlement of an estate in
the second quarter of 2002.

      Another factor affecting noninterest income is in March 2002, one of the
Bank's Board of Directors passed away and the Bank was the beneficiary of a life
insurance policy on the director. The Bank received $43,379 in a death benefit,
$21,645 of which was recorded in assets as cash surrender value. The difference
of $21,734 was reflected in other operating income during the first quarter
2002.

NONINTEREST EXPENSES

      Noninterest expenses for the three and nine months ended September 30,
2003, increased $53,000 or 3.9% and $392,000 or 9.9% primarily due to increases
in salaries and employee benefits, occupancy expense, furniture, fixtures and
equipment expenses and other operating expenses. Salaries increased due to
normal recurring merit increases and remuneration in connection with the
conversion of the Bank's core processing system. Employee benefit costs rose due
to increased health insurance and pension costs. The increase in occupancy
expense was due to an increase in depreciation relating to the new south
Martinsburg branch facility and general building repairs and maintenance
expenses. The increase in furniture and equipment expense was due to an increase
in depreciation expense relating to the new computer equipment, software and
peripherals associated with the upgrade of the Bank's technology systems.
Another factor relating to the increase in furniture and equipment expense was
an increase in the cost and number of equipment maintenance contracts the Bank
entered into. The increase in other operating expenses was due to an increase in
stationery, supplies & printing, postage, data


                                       15
<PAGE>

processing, bounce protection expense and debit card expense offset by a
decrease in telephone, advertising and ATM (Automated Teller Machine) expense.

INCOME TAXES

      The Bank's provision for income taxes increased $169,000 or 105.3% to
$329,000 for the three months ended September 30, 2003 and increased $270,000 or
53.4% to $776,000 for the nine months ended September 30, 2003. The effective
tax rates for the third quarter of 2003 and 2002 were 35.5% and 35.1%,
respectively and for the first nine months of 2003 and 2002 were 36.4% and
35.0%, respectively. The Bank's income tax expense differs from the amount
computed at statutory rates primarily due to the tax-exempt earnings from
certain investment securities.

FINANCIAL CONDITION

      The Bank's total assets at September 30, 2003 increased $8.7 million or
4.6% to $200.3 million from December 31, 2002 due primarily to a $11.7 million
increase in loans, $231,000 increase in cash and due from banks, $430,000
increase in Federal Home Loan Bank stock, $350,000 increase in deferred income
taxes and a $312,000 increase in other assets offset by a $3.6 million decrease
in federal funds sold and a $749,000 decrease in investment securities. The
Bank's total liabilities increased $8.4 million or 4.8% to $183.7 million at
September 30, 2003, consisting of deposit growth, which increased to $180.0
million and an increase of $1.3 million in borrowings and an increase of
$497,000 in accrued expenses and other liabilities. Shareholders' equity
increased $347,000 to $16.6 million at September 30, 2003, primarily due to net
income of $1.4 million offset by the semi-annual cash dividend of $179,000 and a
$829,000 decrease in accumulated other comprehensive income. The components of
accumulated other comprehensive income at September 30, 2003, were unrealized
gains and losses on available for sale securities, net of deferred income taxes
and minimum pension liability adjustment, net of deferred income taxes. The
unrealized gains and losses are primarily a function of available market
interest rates relative to the yield being generated on the available for sale
portfolio. No earnings impact results unless the securities are actually sold.

LOAN PORTFOLIO

      At September 30, 2003, total loans increased $11.7 million or 9.1% to
$140.0 million from $128.3 million at December 31, 2002. The loan mix showed a
slight change compared with December 31, 2002. The loan portfolio change is
primarily due to the reclassification of loans within the loan portfolio during
the Bank's recent mainframe computer conversion. The Bank feels additional
growth in all lending areas is possible during the remainder of 2003.


                                       16
<PAGE>

NONPERFORMING ASSETS AND ALLOWANCE FOR LOAN LOSSES

      Nonperforming assets consist of nonaccrual loans, loans which are past due
90 days or more and still accruing interest, restructured loans and other real
estate owned. The following table summarized the Bank's nonperforming assets as
of the periods shown:
<TABLE>
<CAPTION>

                                                     SEPTEMBER 30,                DECEMBER 31,
                                         ------------------------------------   ----------------
                                              2003                2002               2002
                                         ----------------    ----------------   ----------------
<S>                                            <C>                 <C>                <C>
 Nonaccrual loans                              $ 625,137           $   9,338          $  12,711

 Loans past due 90 days or more
    still accruing interest                       81,152             116,145            553,170
                                         ----------------    ----------------   ----------------
 Total nonperforming loans                     $ 706,289           $ 125,483          $ 565,881
                                         ----------------    ----------------   ----------------
 Other real estate owned                       $ 107,619           $   6,500          $   1,800
                                         ----------------    ----------------   ----------------
 Total nonperforming assets                    $ 813,908           $ 131,983          $ 567,681
                                         ================    ================   ================
 Nonperforming loans/Total loans                   0.50%               0.10%              0.44%
 Nonperforming assets/Total assets                 0.41%               0.07%              0.30%
Allowance for loan losses/Total loans              1.11%               1.19%              1.16%
</TABLE>




      As of September 30, 2003, the Bank has no loans which management considers
to be impaired. Management is aware of two borrowers who have exhibited
weaknesses. Their loans have aggregate uninsured balances of $700,251. A
specific allowance of $57,633 related to these loans has been established as
part of the allowance for loan losses. The loans are collateralized and
management anticipates any additional potential loss would be minimal.

      The allowance for loan losses is the best estimate by management of the
probable losses which have been incurred as of a balance sheet date. Management
makes this determination quarterly by its analysis of overall loan quality,
changes in the mix and size of the loan portfolio, previous loss experience,
general economic conditions, information about specific borrowers and other
factors. The Bank's methodology for determining the allowance for loan losses
established both an allocated and an unallocated component. The allocated
portion of the allowance represents the results of analyses of individual loans
that the Bank monitors for potential credit problems and pools of loans within
the portfolio. Management bases the allocated portion of the allowance for loans
principally on current loan risk ratings, historical loan loss rates adjusted to
reflect current conditions, as well as analyses of other factors that may have
affected the collectibility of loans in the portfolio. The Bank analyzes all
commercial loans it is monitoring as potential credit problems to determine
whether those loans are impaired, with impairment measured by reference to the
borrowers' collateral values and cash flows.

      The unallocated portion of the allowance for loan losses represents the
results of analyses that measure probable losses inherent in the portfolio that
are not adequately captured in the allocated allowance analyses. These analyses
include consideration of unidentified losses inherent in the portfolio resulting
from changing underwriting criteria, changes in the types and mix of loans
originated, industry concentrations and evaluations, allowance levels relative
to selected overall credit criteria and other economic indicators used to
estimate probable incurred losses. At September 30, 2003, the allowance for
loans losses totaled $1.6 million compared to $1.5 million at December 31, 2002.
The allowance for loans losses as a percentage of loans was 1.1% as of September
30, 2003 compared to 1.2% as of December 31, 2002.


                                       17
<PAGE>

      An analysis of the allowance for loan losses is summarized below:
<Table>
<Caption>
In thousands                               SEPTEMBER 30,                               DECEMBER 31,
                              ---------------------------------------     ------------------------------------------
                                              2003                                        2002
                              ---------------------------------------     ------------------------------------------
                                                      PERCENT OF                                  PERCENT OF
                                                     LOANS IN EACH                               LOANS IN EACH
                                                      CATEGORY TO                                 CATEGORY TO
                                   AMOUNT             TOTAL LOANS              AMOUNT             TOTAL LOANS
                              ------------------   -----------------------------------------   ---------------------
<S>                                     <C>                      <C>                <C>                     <C>
Commercial, financial                   $   569                   20 %              $   330                   18 %
    and agriculture
Real estate - residential                   375                   67                    391                   65
     mortgage
Installment and other                       247                   13                    364                   17
Unallocated                                 360                  N/A                    399                  N/A
                              ------------------   --------------------   ------------------   ---------------------
       Total                            $ 1,551                  100 %              $ 1,484                  100 %
                              ==================   ====================   ==================   =====================
</Table>

         DEPOSITS

                  The Bank's deposits increased $7.0 million or 4.0% during the
         nine months ended September 30, 2003. The Bank has experienced a slight
         change in the deposit account mix during the first nine months of 2003.
         Steady growth continues in interest-bearing demand and savings
         deposits. The increase is primarily due to the continued customer
         growth in the Bank's market area of Morgan and Berkeley Counties, West
         Virginia and also to the maturity of rate sensitive certificate of
         deposits and customers temporarily placing their money in demand or
         savings accounts. The Bank has experienced a slight decrease in rate
         sensitive jumbo certificate of deposits during the first nine months of
         2003. The decrease is primarily due to the maturity of the 36-month
         Ultimate Certificate of Deposit. These maturities are offset by an
         increase in other time deposits. Deposits, in general, have experienced
         an increase due to customer's concerns with the weak economy and stock
         market.

         CAPITAL RESOURCES

                  Shareholders' equity increased $347,000 or 2.1% during the
         first nine months of 2003 due to $1.4 million in net income offset by
         the semi-annual cash dividend of $179,000 and a $829,000 decrease in
         accumulated other comprehensive income. The Bank is subject to
         regulations of the Office of the Comptroller of the Currency that
         impose certain minimum regulatory capital requirements. Under each
         measure, the Bank was substantially in excess of the minimum regulatory
         requirements, and, by definition was "well capitalized" at September
         30, 2003. The following table summarized, as of September 30, 2003, the
         Bank's capital ratios.
<TABLE>
<CAPTION>
                                                       Components               Actual             Required
                                                       of Capital                Ratio              Ratio
                                                       ----------                -----              -----
<S>                                                    <C>                      <C>                <C>
         Tier 1 Capital                                 $16,573                  8.4%               4.0%
         Total Risk Based Capital                       $18,068                 15.1%               8.0%
</TABLE>

         RECENTLY ISSUED ACCOUNTING STANDARDS

                  In April 2003, the Financial Accounting Standards Board issued
         Statement of Financial Accounting Standards No. 149, Amendment of
         Statement 133 on Derivative Instruments and Hedging Activities. This
         Statement amends and clarifies financial accounting and reporting for
         derivative instruments, including certain derivative instruments
         embedded in other contracts (collectively referred to as derivatives)
         and for hedging activities under Statement of Financial Accounting
         Standards No. 133, Accounting for Derivative Instruments and Hedging
         Activities. This Statement should be applied prospectively for
         contracts entered into or modified after September 30, 2003.


                                       18
<PAGE>

                  In May 2003, the Financial Accounting Standards Board issued
         Statement of Financial Accounting Standards No. 150, Accounting for
         Certain Financial Instruments with Characteristics of Both Liabilities
         and Equity. This Statement established standards for how an issuer
         classifies and measures certain financial instruments with
         characteristics of both liabilities and equity. This Statement is
         effective at the beginning of the first interim period beginning after
         June 15, 2003.

                  Adoption of Statements 149 and 150 are not expected to have a
         material impact on CNB Financial Services, Inc.'s financial condition
         or results of operations.

         ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

                  Market risk is the exposure to economic loss that arises from
         changes in the values of certain financial instruments. The types of
         market risk exposures generally faced by banking entities include
         interest rate risk, equity market price risk, foreign currency risk and
         commodity price risk. Due to the nature of its operations, only equity
         market price risk and interest rate risk are significant to the Bank.

                     The objective of the Bank's liquidity management program is
         to ensure the continuous availability of funds to meet the withdrawal
         demands of depositors and the credit needs of borrowers. The basis of
         the Bank's liquidity comes from the stability of its core deposits.
         Liquidity is also available through the available for sale securities
         portfolio and short-term funds such as federal funds sold. At September
         30, 2003, these totaled $43.2 million, or 21.6% of total assets. In
         addition, liquidity may be generated through loan repayments and over
         $3.0 million of available borrowing arrangements with correspondent
         banks. At September 30, 2003, management considered the Bank's ability
         to satisfy its anticipated liquidity needs over the next twelve months.
         Management believes that the Bank is well positioned and has ample
         liquidity to satisfy these needs. The Bank generated $1.9 million of
         cash from operations in the first nine months of 2003, which compares
         to $1.6 million during the same time period in 2002. Additional cash of
         $8.0 million was generated through net financing activities through
         September 30, 2003, which compares to $17.2 million for the first nine
         months of 2002. These proceeds along with proceeds from the sales and
         maturities of investment securities were used to fund loans and
         purchase securities during each year. Net cash used in investing
         activities totaled $9.7 million during the first nine months of 2003
         compared to $14.2 million during the same time period in 2002. Details
         on both the sources and uses of cash are presented in the Consolidated
         Statements of Cash Flows contained in the financial statements.

                  The objective of the Bank's interest rate sensitivity
         management program, also known as asset/liability management, is to
         maximize net interest income while minimizing the risk of adverse
         effects from changing interest rates. This is done by controlling the
         mix and maturities of interest sensitive assets and liabilities. The
         Bank has established an asset/liability committee for this purpose.
         Daily management of the Bank's sensitivity of earnings to changes in
         interest rates within the Bank's policy guidelines are monitored by
         using a combination of off-balance sheet and on-balance sheet financial
         instruments. The Bank's Chief Executive Officer, Senior Lending
         Officer, Chief Financial Officer and the Chief Operations Officer
         monitor day to day deposit flows, lending requirements and the
         competitive environment. Rate changes occur within policy guidelines if
         necessary to minimize adverse effects. Also, the Bank's policy is
         intended to ensure the Bank measures a range of rate scenarios and
         patterns of rate movements that are reasonably possible. The Bank
         measures the impact that 200 basis point changes in rates would have on
         earnings over the next twelve months.

                  In analyzing interest rate sensitivity for policy measurement,
         the Bank compares its forecasted earnings in both a "high rate" and
         "low rate" scenario to a base-line scenario. The Bank's base-line
         scenario is its estimated most likely path for future short-term
         interest rates over the next 12 months. The "high rate" and "low rate"
         scenarios assumes a 100 and 200 basis point increases or decreases in
         the prime rate from the beginning point of the base-line scenario over
         the most current 12-month period. The Bank's policy limit for the
         maximum negative impact on earnings resulting from "high rate" or "low
         rate" scenarios is 10 percent. The policy measurement period is 12
         months in length, beginning with the first month of the forecast.


                                       19
<PAGE>

         The Bank's base-line scenario holds the prime rate constant at 4.00
         percent through September 2004. Based on the October 2003 outlook, if
         interest rates increased or decreased by 200 basis points, the model
         indicates that net interest income during the policy measurement period
         would be affected by less than 10 percent, in both an increasing or
         decreasing interest rate scenario.

         ITEM 4.  CONTROLS AND PROCEDURES

                  The Company's chief executive officer and chief financial
         officer, based on their evaluation as of the end of the reporting
         period of this quarterly report of the Company's disclosure controls
         and procedures (as defined in Rule 13 (a) - 14 (c) of the Securities
         Exchange Act of 1934), have concluded that the Company's disclosure
         controls and procedures are adequate and effective for purposes of Rule
         13 (a) - 14 (c) and timely, alerting them to material information
         relating to the Company required to be included in the Company's
         filings with the Securities and Exchange Commission under the
         Securities Exchange Act of 1934.

                  There were no significant changes in the Company's internal
         controls or in other factors that could significantly affect internal
         controls subsequent to the date of their evaluation. The Company
         converted to the use of new software for its core processing system on
         February 14, 2003. The conversion significantly affected the Company's
         accounting systems as well as the loan and deposit processing. The
         conversion resulted in changes to procedures and controls, both manual
         and through electronic data processing. Throughout the preparation for
         the conversion, the new procedures and controls were reviewed and
         planned for and are in the implementation stage. Although, the
         Company's procedures and controls have changed with the conversion,
         management's conclusion that the controls are adequate and effective
         has not changed.

                  As exhibits to this quarterly report on Form 10-Q,
         certificates of the chief executive officer and chief financial officer
         appear. This form of certification is required in accordance with
         Section 302 of the Sarbanes-Oxley Act of 2002. This section of the
         quarterly report on Form 10-Q is the information concerning the
         controls evaluation referred to in the Section 302 certifications. This
         information should be read in conjunction with those certifications for
         a more complete understanding of the topics presented.

                  Disclosure controls are procedures that a company designs with
         the objective of ensuring that information required to be disclosed in
         their reports filed under the Securities Exchange Act of 1934 (such as
         this Form 10-Q), is recorded, processed, summarized and reported within
         the time period specified under the SEC's rules and forms. Disclosure
         controls are also designed with the objective of ensuring that such
         information is accumulated and communicated to management, including
         the CEO and CFO, as appropriate, to allow timely decisions regarding
         required disclosure. Internal controls are procedures that a company
         designs with the objective of providing reasonable assurance that
         transactions are properly authorized, assets are safeguarded against
         unauthorized or improper use and transactions are properly recorded and
         reported all to permit the preparation of a company's financial
         statements in conformity with generally accepted accounting principles.

                  The Company's management, including the CEO and CFO, does not
         expect that our disclosure controls or internal controls will prevent
         all error and fraud. A control system, no matter how well conceived and
         operated, can provide only reasonable, not absolute, assurance that the
         objectives of the control system are met. Further, the design of a
         control system must reflect that fact that there are resource
         constraints, and the benefits of controls must be considered relative
         to their costs. Because of the inherent limitations in all control
         systems, no evaluation of controls can provide absolute assurance that
         all control issues and instances of fraud, if any, within the company
         have been detected. These inherent limitations include the realities
         that judgments and decision-making can be faulty, and that breakdowns
         can occur because of simple error or mistake. Additionally, controls
         can be circumvented by the individual acts of some persons, by
         collusion of two or more people, or by management override of the
         control. The design of any system of control also is based in part upon
         certain assumptions about the likelihood of future events and there can
         be no assurance that any design will succeed in achieving its stated
         goals under all potential future conditions. Over time, controls may
         become inadequate because of changes in conditions, or the degree of
         compliance with the policies or procedures may deteriorate.


                                       20
<PAGE>

                  Based upon the controls evaluation conducted by our CEO and
         CFO, they have concluded that, subject to the limitations noted above,
         the company's disclosure controls are effective to ensure that material
         information relating to CNB Financial Services and its subsidiaries is
         made known to management, including the CEO and CFO, particularly
         during that period when our periodic reports are being prepared, and
         that our internal controls are effective to provide reasonable
         assurance that our financial statements are fairly presented in
         conformity with generally accepted accounting principles.



                                       21
<PAGE>

                           PART II: OTHER INFORMATION

         Item 1.   Legal Proceedings

                  None; however, CNB is involved in various legal proceedings
                  occurring in the ordinary course of business. There are no
                  material legal proceedings to which CNB or its subsidiary is a
                  part, or to which any of their property is subject.

         Item 6.  Exhibits and Reports on Form 8-K

         a.)      Exhibits:

                  31.1 Certification of the Chief Executive Officer pursuant to
                  18 U.S.C. Section 1350, as adopted pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002

                  31.2 Certification of the Chief Financial Officer pursuant to
                  18 U.S.C. Section 1350, as adopted pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002

                  32.1 Certification of the Chief Executive Officer pursuant to
                  18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
                  the Sarbanes-Oxley Act of 2002

                  32.2 Certification of the Chief Financial Officer pursuant to
                  18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
                  the Sarbanes-Oxley Act of 2002

         b.)      Reports on Form 8-K:

                  Date of Report       Item      Description
                  --------------       ----      -----------

                  November 7, 2003     12        The Company issued a press
                                                 release that announced
                                                 operating results of its
                                                 first nine months
                                                 ended September 30, 2003




                                       22
<PAGE>

                                   SIGNATURES

  In accordance with the requirements of the Securities Exchange Act of
  1934, the registrant caused this report to be signed on its behalf by
  the undersigned, thereunto duly authorized.

  CNB Financial Services, Inc.
  ----------------------------
         (Registrant)

  Date       November 13, 2003      /s/ Thomas F. Rokisky, President/CEO
             -----------------      ------------------------------------

  Date       November 13, 2003      /s/ Rebecca S. Stotler, Vice President/CFO
             ------------------     ------------------------------------------




                                       23